Costs allowable against tax on sale of a site?

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MisterB

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I bought a site about 8 years ago, with a view to selling my own home and building a new one. That didn't work out so I've since split the site into 2 and want to sell one of them. (With Planning Permission)

I've incurred costs over the years - site works, architect, planning etc. Also the split of the site is not even. One site is definitely worth more than the other. (I want to keep the less valuable one and build something smaller for 'just the two of us' in time)

I'd be grateful for advice on what costs are allowable against CGT; how I show these etc. Is interest on loans allowable?
With Thanks.....
 
The big cost not to forget is the stamp duty you paid when purchasing the site eight years ago.
 
How nig is the site, and how urgent must yopu sell it?

If you build your PPR first, there may* be scope to treat some of the money from the site you plan to sell as part of your PPR, exempting it from any CGT (assuming you have a profit on disposal).

*An advisor would need to examine this in greater detail as if the site was considered as 'development land' (within a CGT context), then there may be no exemption applying ie CGT applicable in full.

Definitely worth getting some 'real-world' professional advice.
 
I had forgotten about the stamp duty Dr. Debt....Thanks. Can't afford to build first Kildavin so that avenue, despite possible benefits, is out. Under what circumstances would the site be considered development land. It's not in an urban setting so no 'rezoning' issues.
 
Steady on and let's not get ahead of ourselves here - will you actually have a capital GAIN as a result of this? How much did you pay in 2006, how much will you receive on a sale, and how much will the remainder that you're holding onto be worth?
 
Who knows? However, I bought without planning and got it later for very desirable houses, as well as making real improvements to the site re landscaping etc. They are at the coast in a desirable location with sea views, particularly the one I hope to sell. I bought for 85 and would hope to get close to 100 for the 'better' site. It's all guesswork really as it depends on finding a buyer who wants the location. If I don't get this, I probably will live with the debt and wait until I can sell my own home.
 
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